The following table shows the sales and average book value of fixed assets for three dif-ferent companies from three different industries for a recent year:Average BookValue of FixedAssets (in millions)Sales (inmillions)Company (Industry)$ 26,450$ 74,989Alphabet (Google) Inc. (Internet)Comcast Corporation (communications)Wal-Mart Stores, Inc. (retail)74,51032,309485,651117,281a. For each company, determine the fixed asset turnover ratio. Round to one decimal place.Explain Comcast's fixed asset turnover ratio relative to the other two companies.b.

a.Calcualte fixed asset turnover ratios:

Answered: The following table shows the sales and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Additionally, the company informed the following: Net income = $156,042 Sales = $4,063,589 Determine the following values for the company: Total asset turnover ratio _____________ Fixed asset turnover ratio _____________
The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,487 $322,123 Equity assumed value -- $10,922 $272,541 NOPAT $3,260 $980 $8,312 Net income $2,937 $801 $6,670 Net nonoperating obligations (assets) $11,340 $2,565 $49,582 Common shares outstanding 510.9 shares 159.0 shares 2,844.0 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places.Kohl's Answer:Wal-Mart Answer:(b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. Round the intrinsic value and equity intrinsic value to the nearest million and the value per share to the nearest cent.Average of the two rounded ratios in (a) aboveAnswer (Round to two decimal places.)
Practice Problem Below are the balance sheet and income statement for Major, Inc. December 31 2007 2006Cash $ 29,700 $ 10,200 Accounts receivable (net) 53,400 20,300 Inventory 39,000 42,000 Long-term investments 0 15,000 Plant Assets, net of depreciation 180,900 125,000 Total Assets $303,000 $212,500Accounts payable $ 16,000 $ 26,500 Accrued liabilities 28,000 17,000 Long-term notes payable 40,000 50,000 Common stock 150,000 90,000 Retained earnings 69,000 29,000 Total Liabilities and Owner’s Equity $303,000 $212,500Year ended December 31, 2007Sales Revenue $340,000 Cost of Goods Sold (200,000) Operating Expenses (58,400) Depreciation Expense (10,600) Gain on sale of investments 4,000Net Income $ 75,000Additional information: A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment.B) In 2007, no shares were repurchased and no new debt was issued. 1. Prepare the Statement of Cash Flows…
Calculate the total asset turnover (sales / total assets) for the firm below. Sales 5000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1400
calculate the quick assets (in $) and acid test ratio for the given company. round ratios to the nearest hundredth.
Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2(in millions) Year 1(in millions) Cash and cash equivalents $4,165 $4,528 Short-term investments, at cost 2,958 8,408 Accounts and notes receivable, net 9,404 8,624 Inventories 1,771 787 Prepaid expenses and other current assets 590 291 Short-term obligations (liabilities) 315 3,342 Accounts payable and other current liabilities 7,453 6,813 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio fill in the blank 1 fill in the blank 2 Quick ratio fill in the blank 3 fill in the blank 4
McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two recent years: (amounts are in $ millions) Total assets Net Income SalesYear 1: $33,803.70 $5,192.30 $22,820.40Year 2: $32,811.20 $5,924.30 $21,025.20 What was McDonald’s asset turnover ratio for Year 2?
X-1 Corp's total assets at the end of last year were $420,000 and its EBIT was $47,500. What was its basic earning power (BEP) ratio? O a. 15.08% O b. 11.31% O c. 10.16% O d. 8.48% O e. 5.65%
Aardvark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154, 500, and current assets of $89, 500. What is the total asset turnover rate? a) 1.19 b) 1.11 c) 1.24 d) 1.08 e) 1.28
Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows: Income statement data: Line Item Description Amount Net income $49,265 Gain on disposal of property 1,140 Depreciation expense 11,570 Other items involving noncash expenses 1,425 Balance sheet data: Line Item Description Amount Increase in accounts receivable 1,795 Decrease in inventory 1,030 Increase in prepaid expenses 605 Decrease in accounts payable 720 Decrease in accrued and other current liabilities 965 Question Content Area a. Prepare the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. Cardinas Corp.Cash Flows from Operating Activities(in thousands) Line…

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